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Clark Ingram
 Shawna Justus
Chasya McClure
 Ada Martinez
April Singleton
Company Info
• Cradle 2 Cradle Furniture
• Operate as an LLC
• Registered with U.S. Small Business
  Administration
• Legal Name:
  – Cradle 2 Cradle Furniture, LLC.
Mission Statement


“Cradle 2 Cradle Furniture’s mission is to create a
     second life for quality furniture through
 renovation. The objective is to reduce waste and
               create opportunity”
Specific Goals & Objectives
• Break even 18 months after opening
• Maintain steady increase in profits after
   – To be able to pay more for customer donations with
     each passing year
• Steady flow of consumers weekly
   – Promotions, advertising strategies
• Maintain innovativeness with its employees
Specific Goals & Objectives
• Speedy turnaround time
   – Minimum of 3 weeks when creating new designs
• Within 5 years
   – Gain and keep trust of surrounding communities
   – Steady growth in company’s promotional strategies
      • Being recognized in industry magazines
• Main Goal:
   – To minimize dumping of furniture by 50%
      • Reduce carbon footprints
Target Market
•   Environmentally friendly
•   Cost-conscious
•   Homeowners/renters
•   Women
    – 25-39 – light focus
    – 40-50+ - heavily focused
Products/Services/Customer Service
             Offered
• Incentives for clients who choose our services
• Purchase merchandise directly from owner
• Pickup and delivery options
Products/Services/Customer Service
                Offered
• In house customer services department:
  – Inform customers of wear-ability of products
  – Inform customers what products are currently
    offered
  – Limited warranty – 1-3 years
  – Billing and account information
SWOT Analysis
               STRENGTHS                                   OPPORTUNITIES
Pickup and delivery of items                   To be the leader in this type of category
                                               The slow economy picking up creating an
Refurbishing services
                                               increase in inventory
Sustainable/Ecofriendly                        Partnering with habitat for humanity
                                               Selling in the World Trade Center
Skilled professionals in renovations
                                               Expand into more incentives
Customizable – COM options available           Job opportunities and quality training

              WEAKNESSES                                       THREATS
To renovate at a reasonable price across the   Unstable economy
board                                          Delivery company for new furniture takes
Not having enough inventory for continuous     your old
flow of customers                              Craigslist or consignment stores yield more
Consumers’ lack of confidence                  profits
Limited floor space and selection of           Discount stores offering designer items
fabrics/leathers                               Inability to attract young customers with
No drop-off zone                               higher standards on current trends
Nature of Merchandise
• Cradle 2 Cradle “Yes Pile” Acquisitions
       Lightly used
       In good or perfect condition
       Refurbished work if needed
   Furniture Merchandise (Sets or Single assortment)
        Bedroom Sets
        Living room
        Dining Room
        Bar furniture
        Office furniture
        Sofas, chairs
        Accessories

• Note: Due to the U.S. Consumer Product Safety Commission’s Laws and
  Regulations Cradle 2 Cradle will remain from selling any used children
  furniture, or any used furniture intended for children
Assortment and Brands Carried
Cradle 2 Cradle carries a varied selection of brands, including an eclectic collection of
home furnishings and décor ,guaranteeing products of quality and excellent condition.
Cradle 2 Cradle will house high-end items at great discounts.

•   Accessories
•   Antiques
•   Art Work
•   Bar furniture
•   Bedroom furniture
•   Bunk Beds
•   Chairs
•   Collectable Glassware
•   Dining Room Sets
•   Dressers
•   End Tables
•   Lamps
•   Living room furniture
•   Office furniture
•   Sofas
•   Tables
•   Window Treatments
Quality and Pricing
• Level of Quality

• Cradle 2 Cradle management developed a checklist in which
  the associates will inspect the merchandise previous to making
  the purchase, therefore guaranteeing the quality of the gently
  used assortment. This process supports the Cradle 2 Cradle
  pricing strategy.

• To guarantee a pleasurable consumer experience Cradle 2
  Cradle will provide quality products and committed employees
  catering to clients’ needs. Utilitarian and hedonic experience
  will be captured through the services and products provided.

• Useful life – usually 8 years for furniture and depreciates 20%
  annually
Quality and Pricing
•   Accessories                $18.00 to $240
•   Antiques                   Based on appraisal
•   Art Work                   $18.00 and $300
•   Bar furniture              $36 to $200
•   Bedroom furniture          $60 and $2000
•   Bedroom Sets               $100 and $2000
•   Bunk Beds                  $40 and $100
•   Chairs                     $40 to $80
•   Upholstered Chairs         $80 and $240
•   Collectable Glassware      $20 and $200
•   Dining Room Sets           $100 and $2000
•   Dressers                   $30 and $300
•   End Tables                 $20 to $100
•   Lamps                      $9 and $200
•   Living Room Sets           $100 and $2000
•   Office furniture           $30 and $1500
•   Sofas                      $40 and $800
•   Tables                     $40 and $800
•   Window Treatments          $9 to $400

            • Low              $9.00 - $80.00
            • Medium           $100.00 - $400.00
            • High              $800.00 - $2,000.00
Markdowns & Markups
• Markups
   – Consider Market Trend and Fair Business Practices
   – Markup Policy 20%
   – 200% - 400%
       • Barely or not used items
       • Gently used items
       • All Depending on brand and condition

• Markdowns
   – Markdown policy
      • 20% after 8 weeks
      • 30% after 12 weeks
      • 50% after 20 weeks
      • Other factors will be taken into consideration depending on willingness
        to finish a sale (negotiating capacities)
Consumers right to information
Cradle 2 Cradle has the differentiation of salvaging products and find new homes for them and having
the commitment of always caring for the consumers’ right of information through labels having
registered permit numbers from the Federal Trade Commission. Also ,another service that sets Cradle
to Cradle apart from its competition is the offering of a 1 - 3 year limited warranty to any refurbished
item. Cradle 2 Cradle services and warranty are a unique services not offered by other competitors.


Texas is a Label Law State
•           New and used products determined by law MUST have a manufacturer’s label
•           Labeling for second hand items –
            • Any item found or brought to Cradle 2 Cradle for resale purposes with a missing label
                will have attached label (A) as required by law.

           •   Any item brought to Cradle 2Cradle that is refurbished, re-upholstered by Cradle 2
               Cradle for resale purposes will have attached label (B) as required by law.

           •   Any item brought to Cradle 2Cradle by its owner for re-upholstered or repair or
               renovation purposes Cradle 2 Cradle will attached the label (C) as required by law.
Product Labels
Location and Business Hours
•   Cradle 2 Cradle is located in:
     – Dallas Design District
          1532 Edison Street
          Dallas, Texas,


•   Dallas Design District
     – Ideal location for Cradle 2 Cradle
     – Area patronized and supported by:
           • Designers, decorators, architecture firms, antique dealers, retail industry
             representative (merchandising) and buyers
           • Location benefitted with the latest trends
           • Important financial centers

•   Cradle 2 Cradle’s schedule
     – Monday – Saturday, 10:00 am to 7:00 pm
     – Also catering to convenient private sessions by appointment only
Competition
• Revente Resale – 9 miles from Cradle 2 Cradle
 5400 E. Mockingbird Ln
  #113 Dallas, TX

• Pandemonium Limited – 9 minutes from Cradle
  2 Cradle
  2726 North Henderson Ave
   Dallas, TX
Promotional Strategy



• Four major promotional tools
        1.   Advertising
        2.   Public Relations
        3.   Personal Selling
        4.   Sales Promotions
Advertising
  • Essential to their success as a new
    business
      – Makes presence known
      – Enticing consumers to visit store


  • Advertising Used:
      – Print
          • Newspapers
          • Magazines
          • Direct Mail
          • Brochures
          • Business Cards
Newspaper
• Dallas Morning News
  – Caters to local
    community
  – Sunday edition
     • 26.5% Dallas Market reach
     • 52 weeks/year

  – Guide Daily
     • April edition (Earth Day)
     • December edition (gift
       guide for the home)
Magazines
   • D Home
      – 70% female
      – 25-54 year-olds
      – Ave. household income = $355,000

   • Texas Monthly
      –   50/50 female/male
      –   Median age 46.5
      –   Median household income = $91,946
      –   78% own a home
      –   Highest circulation is in DFW

   • Dallas-Fort Worth Design Guide
      – Annual publication of fine home
        furnishings, products and services
Brochures
        •   Location
        •   Map Visual
        •   Information
        •   Recycling Facts
        •   Promotion
Business Card
Public Relations

• Personnel in charge of:
   –   Press releases
   –   Event sponsorship
   –   News releases
   –   Avenues to support
       community activities


• Can raise awareness @ lower
  cost
Personal Selling
• Business-to-Business (B2B)
   – To inform and persuade possible
     clients of available
     services, products, and
     advantages of doing business with
     them
       • Hotels, country clubs, office
         buildings




• Events
Personal Selling
• Events
   – Set up a booth to inform potential
     consumers of their products and
     services
       • Earth Day
       • Arts and Crafts Fair


   – Feature Cradle 2 Cradle finished
     items (including before and after
     pictures)

   – Event specific featured item
Sales Promotions
• Initial promos to get customer to visit store
   – i.e. “buy 1 chair, get your custom
      upholstery free”

• To existing customers
   – Referrals
      • to encourage customer to tell friends
         and family
   – Become specific and tailored to our
     customer
Store Design
• Industrial and Craftsman style characteristics
   – Exposed bricks, columns, ceiling beams, 20 ft ceiling
• Open Loft concept, just under 1400 sf
   – Room displays, designated clearance area, consulting
     space upstairs
• Contrasting wall colors with an earthy
  “lemongrass” and a deep “starless night”
   – Accents of stainless steel, iron, wood and concrete
     elements
Lighting
• Commercial bay lights along with recessed
  lighting
• Hanging pendants over the check-out counter
  for task lighting
• Windows for natural light

 Lighting is low key and used to emphasize certain products, but
            overall creates a comfortable environment.
Consultation Area
• Designated to aid
  customers in the decision
  making process for:
  upholstery, stain, re-
  designs and purchase
  options
• Located upstairs to allow
  for fewer distractions and
  a more personal
  atmosphere

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Cradle 2 Cradle Furniture Business Plan

  • 1. Clark Ingram Shawna Justus Chasya McClure Ada Martinez April Singleton
  • 2. Company Info • Cradle 2 Cradle Furniture • Operate as an LLC • Registered with U.S. Small Business Administration • Legal Name: – Cradle 2 Cradle Furniture, LLC.
  • 3. Mission Statement “Cradle 2 Cradle Furniture’s mission is to create a second life for quality furniture through renovation. The objective is to reduce waste and create opportunity”
  • 4. Specific Goals & Objectives • Break even 18 months after opening • Maintain steady increase in profits after – To be able to pay more for customer donations with each passing year • Steady flow of consumers weekly – Promotions, advertising strategies • Maintain innovativeness with its employees
  • 5. Specific Goals & Objectives • Speedy turnaround time – Minimum of 3 weeks when creating new designs • Within 5 years – Gain and keep trust of surrounding communities – Steady growth in company’s promotional strategies • Being recognized in industry magazines • Main Goal: – To minimize dumping of furniture by 50% • Reduce carbon footprints
  • 6. Target Market • Environmentally friendly • Cost-conscious • Homeowners/renters • Women – 25-39 – light focus – 40-50+ - heavily focused
  • 7. Products/Services/Customer Service Offered • Incentives for clients who choose our services • Purchase merchandise directly from owner • Pickup and delivery options
  • 8. Products/Services/Customer Service Offered • In house customer services department: – Inform customers of wear-ability of products – Inform customers what products are currently offered – Limited warranty – 1-3 years – Billing and account information
  • 9. SWOT Analysis STRENGTHS OPPORTUNITIES Pickup and delivery of items To be the leader in this type of category The slow economy picking up creating an Refurbishing services increase in inventory Sustainable/Ecofriendly Partnering with habitat for humanity Selling in the World Trade Center Skilled professionals in renovations Expand into more incentives Customizable – COM options available Job opportunities and quality training WEAKNESSES THREATS To renovate at a reasonable price across the Unstable economy board Delivery company for new furniture takes Not having enough inventory for continuous your old flow of customers Craigslist or consignment stores yield more Consumers’ lack of confidence profits Limited floor space and selection of Discount stores offering designer items fabrics/leathers Inability to attract young customers with No drop-off zone higher standards on current trends
  • 10. Nature of Merchandise • Cradle 2 Cradle “Yes Pile” Acquisitions Lightly used In good or perfect condition Refurbished work if needed Furniture Merchandise (Sets or Single assortment) Bedroom Sets Living room Dining Room Bar furniture Office furniture Sofas, chairs Accessories • Note: Due to the U.S. Consumer Product Safety Commission’s Laws and Regulations Cradle 2 Cradle will remain from selling any used children furniture, or any used furniture intended for children
  • 11. Assortment and Brands Carried Cradle 2 Cradle carries a varied selection of brands, including an eclectic collection of home furnishings and décor ,guaranteeing products of quality and excellent condition. Cradle 2 Cradle will house high-end items at great discounts. • Accessories • Antiques • Art Work • Bar furniture • Bedroom furniture • Bunk Beds • Chairs • Collectable Glassware • Dining Room Sets • Dressers • End Tables • Lamps • Living room furniture • Office furniture • Sofas • Tables • Window Treatments
  • 12. Quality and Pricing • Level of Quality • Cradle 2 Cradle management developed a checklist in which the associates will inspect the merchandise previous to making the purchase, therefore guaranteeing the quality of the gently used assortment. This process supports the Cradle 2 Cradle pricing strategy. • To guarantee a pleasurable consumer experience Cradle 2 Cradle will provide quality products and committed employees catering to clients’ needs. Utilitarian and hedonic experience will be captured through the services and products provided. • Useful life – usually 8 years for furniture and depreciates 20% annually
  • 13. Quality and Pricing • Accessories $18.00 to $240 • Antiques Based on appraisal • Art Work $18.00 and $300 • Bar furniture $36 to $200 • Bedroom furniture $60 and $2000 • Bedroom Sets $100 and $2000 • Bunk Beds $40 and $100 • Chairs $40 to $80 • Upholstered Chairs $80 and $240 • Collectable Glassware $20 and $200 • Dining Room Sets $100 and $2000 • Dressers $30 and $300 • End Tables $20 to $100 • Lamps $9 and $200 • Living Room Sets $100 and $2000 • Office furniture $30 and $1500 • Sofas $40 and $800 • Tables $40 and $800 • Window Treatments $9 to $400 • Low $9.00 - $80.00 • Medium $100.00 - $400.00 • High $800.00 - $2,000.00
  • 14. Markdowns & Markups • Markups – Consider Market Trend and Fair Business Practices – Markup Policy 20% – 200% - 400% • Barely or not used items • Gently used items • All Depending on brand and condition • Markdowns – Markdown policy • 20% after 8 weeks • 30% after 12 weeks • 50% after 20 weeks • Other factors will be taken into consideration depending on willingness to finish a sale (negotiating capacities)
  • 15. Consumers right to information Cradle 2 Cradle has the differentiation of salvaging products and find new homes for them and having the commitment of always caring for the consumers’ right of information through labels having registered permit numbers from the Federal Trade Commission. Also ,another service that sets Cradle to Cradle apart from its competition is the offering of a 1 - 3 year limited warranty to any refurbished item. Cradle 2 Cradle services and warranty are a unique services not offered by other competitors. Texas is a Label Law State • New and used products determined by law MUST have a manufacturer’s label • Labeling for second hand items – • Any item found or brought to Cradle 2 Cradle for resale purposes with a missing label will have attached label (A) as required by law. • Any item brought to Cradle 2Cradle that is refurbished, re-upholstered by Cradle 2 Cradle for resale purposes will have attached label (B) as required by law. • Any item brought to Cradle 2Cradle by its owner for re-upholstered or repair or renovation purposes Cradle 2 Cradle will attached the label (C) as required by law.
  • 17. Location and Business Hours • Cradle 2 Cradle is located in: – Dallas Design District 1532 Edison Street Dallas, Texas, • Dallas Design District – Ideal location for Cradle 2 Cradle – Area patronized and supported by: • Designers, decorators, architecture firms, antique dealers, retail industry representative (merchandising) and buyers • Location benefitted with the latest trends • Important financial centers • Cradle 2 Cradle’s schedule – Monday – Saturday, 10:00 am to 7:00 pm – Also catering to convenient private sessions by appointment only
  • 18. Competition • Revente Resale – 9 miles from Cradle 2 Cradle 5400 E. Mockingbird Ln #113 Dallas, TX • Pandemonium Limited – 9 minutes from Cradle 2 Cradle 2726 North Henderson Ave Dallas, TX
  • 19. Promotional Strategy • Four major promotional tools 1. Advertising 2. Public Relations 3. Personal Selling 4. Sales Promotions
  • 20. Advertising • Essential to their success as a new business – Makes presence known – Enticing consumers to visit store • Advertising Used: – Print • Newspapers • Magazines • Direct Mail • Brochures • Business Cards
  • 21. Newspaper • Dallas Morning News – Caters to local community – Sunday edition • 26.5% Dallas Market reach • 52 weeks/year – Guide Daily • April edition (Earth Day) • December edition (gift guide for the home)
  • 22. Magazines • D Home – 70% female – 25-54 year-olds – Ave. household income = $355,000 • Texas Monthly – 50/50 female/male – Median age 46.5 – Median household income = $91,946 – 78% own a home – Highest circulation is in DFW • Dallas-Fort Worth Design Guide – Annual publication of fine home furnishings, products and services
  • 23. Brochures • Location • Map Visual • Information • Recycling Facts • Promotion
  • 25. Public Relations • Personnel in charge of: – Press releases – Event sponsorship – News releases – Avenues to support community activities • Can raise awareness @ lower cost
  • 26. Personal Selling • Business-to-Business (B2B) – To inform and persuade possible clients of available services, products, and advantages of doing business with them • Hotels, country clubs, office buildings • Events
  • 27. Personal Selling • Events – Set up a booth to inform potential consumers of their products and services • Earth Day • Arts and Crafts Fair – Feature Cradle 2 Cradle finished items (including before and after pictures) – Event specific featured item
  • 28. Sales Promotions • Initial promos to get customer to visit store – i.e. “buy 1 chair, get your custom upholstery free” • To existing customers – Referrals • to encourage customer to tell friends and family – Become specific and tailored to our customer
  • 29. Store Design • Industrial and Craftsman style characteristics – Exposed bricks, columns, ceiling beams, 20 ft ceiling • Open Loft concept, just under 1400 sf – Room displays, designated clearance area, consulting space upstairs • Contrasting wall colors with an earthy “lemongrass” and a deep “starless night” – Accents of stainless steel, iron, wood and concrete elements
  • 30.
  • 31. Lighting • Commercial bay lights along with recessed lighting • Hanging pendants over the check-out counter for task lighting • Windows for natural light Lighting is low key and used to emphasize certain products, but overall creates a comfortable environment.
  • 32. Consultation Area • Designated to aid customers in the decision making process for: upholstery, stain, re- designs and purchase options • Located upstairs to allow for fewer distractions and a more personal atmosphere